New Clearwater plc is a medium-sized company that is considering a new expansion project. You are employed as the financial manager and have established the following information regarding two potential projects that the firm could undertake, both of which require an outlay for a machine of 30,000. The estimated cash flows for each project are as follows: Project A: Sales Variable & Materials costs Fixed costs (excluding depreciation) Year 1 60,000 40,000 12,000 Year 2 80,000 55,000 12,000 Year 3 100,000 70,000 12,000 Project B Years 1 to 3 Sales 100,000 Variable & Materials costs 70,000 Fixed costs (including depreciation) 25,000 Depreciation for project B is calculated on a straight line basis assuming a scrap value of 10% of cost. You are advised that the Internal Rate of Return for Project Bis 22.5% and the company's cost of capital is 12%. REQUIRED: a) Showing all workings, calculate: i. The Net Present Value for both projects. ii The Internal Rate of Return for Project A. lii The Accounting Rate of Return for both projects. (14 marks) b) Using the guide of 300 words, advise the directors of Clearwater pic which project should be accepted. Also, include your findings from part a) to advise regarding the relative advantages / disadvantages of the methods used, alternatives and how any conflicts should be considered